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Pension and WP charges &#39better value than ever&#39

Charges on with-profits bonds and personal pensions represent better value than ever, according to research by consultants Tillinghast-Towers Perrin for the ABI.

Using information app-earing in the FSA&#39s league tables, the survey says char-ges on pension products have fallen to the same level as those on tracker Isas while over a 10-year period, with-profits and unit-linked bonds are significantly chea-per than actively managed Isas and unit trusts.

The research adds that in the short term, endowments designed for savings or mortgage repayment have relatively high reductions in yield and they are much closer to those for Isas and unit trusts over a 25-year term.

ABI head of life and pensions Alan Woods says: “This shows how many life insurance savings and pension plans now have highly competitive and flexible charging structures. Typ-ical charges on pensions and investment bonds are below those of actively managed unit trusts or Isas.”

Threadneedle director of communications Richard Eats says: “One product allows for the cost of advice to be paid to the intermediary and one does not. It is like comparing a kit car with a ready-made model. You can build the car from scratch if you want.”

The Investment Mana-gers&#39 Association says it cannot comment until it has studied the document.


Widows pays £1.4bn to GAR holders over Lords ruling

Scottish Widows is shelling out £1.4bn to compensate guaranteed annuity rate policyholders after finding its bonus practice does not comply with the House of Lords&#39 ruling on Equitable Life.The life office had got round its guaranteed annuity liabilities by offering policyholders often higher transfer values than if they exercised their right to guaranteed rates with […]

Equitable drives policyholder to distraction

An Equitable policyholder has pleaded guilty to blackmail after being driven to distraction by the behaviour of the life office. Julian Del Guidice, a librarian at the Imperial War Museum, was so incensed after seeing his pension fund lose £18,000 that he threatened to burn the house of the salesman who sold him the pension. […]

Co-operative Bank chooses FTSE4 Good

Co-operative Bank has introduced a guaranteed offshore bond that tracks the FTSE4Good UK 50 index for five years.The FTSE 4Good UK 50 index is one of a series of socially responsible indices established by FTSE in July 2001. It contains 50 of the largest socially responsible companies in the UK, which are also listed on […]

MPs to probe FSA plans

IFAs have been thrown a lifeline as the Treasury select committee has confirmed that it plans to hold hearings in to the FSA&#39s polarisation proposals.The Parliamentary committee, which is made up of MPs of all parties, says that it is very concerned about the regulator&#39s proposals and plans to conduct a hearing as soon as […]

Benefits of using a probate bare trust

Have you ever wondered what happens to someone’s investment bond on their death if it is not written in trust? When someone dies it is essential to deal with their estate, which can be made up of their home, belongings, investment bonds and anything else they may have owned. But, it is not as simple […]


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